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Gig Economy Myths Debunked

The gig economy consists of workers who provide services on a part-time and on-demand basis. These workers are not official employees of companies. Instead, they are independent contractors.

WeGoLook has 30,000 gig workers in the Looker Community and value the special skillsets these Lookers bring to our unique business model.

They often work on a project-to-project basis, and work for many different companies. And the gig economy is booming, with one study projecting that by 2020 50 percent of our workforce will be independent.

Despite this rapid growth, there are still some uncertainty and misconception about the gig world.

Here are some of the top gig economy myths debunked.

Myth #1: The gig economy is a small and irrelevant workforce.

This is definitely not true. In fact, more than 54 million people worked in the gig economy in some way in America in 2015.

This is a staggering amount of workers and it amounts to more than 33 percent of the total U.S. workforce population.

Myth #2: The gig economy is temporary.

This is also definitely a myth that is not based in fact. The gig economy is growing steadily in size and influence.

In fact, it is predicted that by 2020 more than 50 percent of the American workforce will be workers in the gig economy.

Myth #3: Companies that operate in the gig economy are web-only, are not valuable.

Companies that operate in the gig economy can be extremely profitable and valuable.

For example, Uber, a taxi company that relies heavily on independent contractors is the fastest growing startup of all time.

In its first five years in operation, the company grew to a valuation of $60 billion. This is a perfect example of how helpful the gig economy can be to companies who operate in it.

Also, despite being a young company that is massively expanding, Airbnb posted profits for the first time in 2016.

Being able to avoid payroll taxes and benefits for independent workers is a bonus of the gig economy for companies. However, this is not the main reason why companies hire independent contractors.

According to one survey, 56 percent of employers hire independent contractors due to expertise. Also, 42 percent reported hiring independent contractors due to seasonal demand increases.

Myth #5: The gig economy is only growing stronger in the United States.

This is not true. Actually, the gig economy is growing stronger in many other places.

For example, in Europe, the gig economy experienced a 45 percent increase in the amount of independent contractors from the year 2012 to the year 2013. The benefits of the gig economy have apparently been noticed by more than one country.

The flexibility and higher amounts of freedom appear to be driving the millennial support of the gig economy. Employment can also be easier to find in the gig economy for millennials.

For example, it may be easier for many millennials to simply rideshare than to obtain a traditional job at a corporation.

Myth #7: Independent workers only work in the gig economy because they have no choice.

This may be true for some people who work in the gig economy. However, one source reports that the vast majority say they work in the gig economy based on choice.

Reportedly, 70 percent of freelancers work in the gig economy because it is their preference.

Myth #8: Companies do not like hiring freelance workers.

According to one source, roughly 50 percent of U.S. businesses in a survey reported to boosting their use of freelance contractors in the past five years.

This indicates that companies are starting to rely significantly more on freelance workers than they have done in the past.

What becomes abundantly clear when reviewing the statistics behind the growing gig economy, is that this economic trend has staying power. It's time for businesses to get on board and consider how the gig economy can plug into their business processes.

In 2016, global insurtech investments totaled $1.7 billion, with both the volume and value of deals roughly doubling since 2014. This doesn’t include companies that are self-funded, have traditional financing, or work with angel investors to bring innovation to the $4.5 trillion global insurance industry. And, every segment of the insurance value chain has been impacted by those investments, including claims.

We are excited to announce our partnership with the CCC ONE platform to help insurance policyholders file self-service claims remotely. CCC ONE is a cloud platform developed by CCC Information Services, Inc. (CCC), a leading software as a service provider to the automotive, insurance, and collision repair industries. Founded in 1980, CCC leverages the CCC ONE platform to link a vast network of more than 350 insurance carriers, more than 24,000 repair facilities, hundreds of part suppliers, dozens of third-party data and service providers, and car manufacturers.

Through this partnership, CCC’s customers can electronically connect to our on-demand field force of more than 40,000 well-trained Lookers who are available 24 hours a day, 7 days a week. Our Lookers are always standing by to help insurers provide a high-level of service at a critical point in the claims process. When assigned, one of our Lookers will gather imagery and information in the field, in any U.S. location—even rural areas—in as little as one day.

How it works

When a claim qualifies for CCC’s mobile channel, policyholders are instructed by their insurer how to capture and upload photos of the damage via their smart device. However, when the policyholder requests assistance, or they do not complete the process within the insurer-defined period, insurers can send us an electronic notification through CCC ONE.

As soon as we receive the request for assistance, we dispatch a nearby Looker to take and upload photos to CCC ONE. Once the photos are uploaded, they are immediately available for insurance appraisers to initiate the claims or repair process.

Additionally, any of CCC’s customers can directly assign claims to WeGoLook through CCC ONE. Once assigned, we immediately dispatch Lookers to capture and upload photos and other requested information from the site of the claim.

It’s a win, win, win

We’re very excited about this partnership the many ways it allows WeGoLook to offer value to policyholders and insurers alike. With CCC and WeGoLook, policyholders gain an even more seamless experience when filing self-service claims. Insurers get access to our on-demand workforce through the CCC platform to help them provide even better service to their insurance industry clients.

And for us, this partnership furthers our mission, and the mission of our parent company, Crawford & Company, to help restore and enhance lives, businesses, and communities.